Proya(SH:603605) Caixin Securities·2024-08-31 03:30Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company has demonstrated significant revenue growth, with a 37.9% increase in revenue to 5 billion CNY in the first half of 2024, and a 40.48% increase in net profit to 702 million CNY [4][5] - The company's main brand, Proya, continues to show strong performance, with a revenue of 3.98 billion CNY in H1 2024, reflecting a 37.67% year-on-year growth [5] - The report highlights the effectiveness of the company's diversified brand strategy, which is solidifying its position as a leading domestic beauty brand [4][6] Financial Performance Summary - Revenue projections for the company are as follows: 2024E at 115.82 billion CNY, 2025E at 142.71 billion CNY, and 2026E at 169.29 billion CNY [4][8] - Net profit forecasts are 15.35 billion CNY for 2024E, 18.53 billion CNY for 2025E, and 21.69 billion CNY for 2026E [7][8] - Earnings per share (EPS) are projected to be 3.87 CNY for 2024E, 4.67 CNY for 2025E, and 5.47 CNY for 2026E [7][8] Revenue Breakdown - In H1 2024, online sales accounted for 93.69% of total revenue, generating 46.8 billion CNY, while offline sales contributed 6.31% with 3.14 billion CNY [5] - The skincare category generated 41.91 billion CNY in revenue, representing 83.91% of total sales, with a year-on-year growth of 37.12% [5] Profitability Analysis - The company's gross margin for H1 2024 was 69.82%, slightly down from the previous year, while the net profit margin was 14.47% [5][6] - The increase in sales expenses is attributed to higher promotional costs, with the sales expense ratio rising to 46.78% [5] Future Outlook - The company is focusing on rapid product iteration and diversification, with new product lines launched to address various skin concerns [6][7] - The report anticipates continued growth for the company, supported by its clear strategic planning and diversified business model [7]